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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Exercise 10-2 Acquisition cost; equipment [LO10-1]
Oaktree Company purchased new equipment and made the following expenditures: |
 | |||
  Purchase price | $ | 64,000 |  |
  Sales tax |  | 4,100 |  |
  Freight charges for shipment of equipment |  | 890 |  |
  Insurance on the equipment for the first year |  | 1,090 |  |
  Installation of equipment |  | 2,900 |  |
 |
     The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. |
Required: |
Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1) Record the purchase of equipment 2) Record any expenditures not capitalized in the purchase of equipment |
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â----------- Th-----------ank----------- Yo-----------u f-----------or -----------usi-----------ng -----------our----------- we-----------bsi-----------te -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n. -----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill-----------